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Edexcel Business Studies 9-1 > Theme 1.1 > Flashcards

Flashcards in Theme 1.1 Deck (9)
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1

What is business enterprise?

Business enterprise is the process of identifying new business opportunities and then taking advantage of them.

2

Give three purposes of business activity

Provide people with a good or service, Meet customer needs and Add value

3

Name the ways in which a business can add value to a product

Make a product convenient, Having a good brand image for a product, Improve the design or quality, Have a USP for the product.

4

Why do new business ideas come about?

Changes in technology, Change in consumer needs, Products becoming obsolete.

5

What are the two types of business ideas?

Business ideas can be original or an adaptation of an existing product.

6

What is an entrepreneur?

An entrepreneur is someone who takes on the risks of enterprise activity.

7

What must an entrepreneur be able to do to run a successful business?

Organise resources (cash flow, resource, organisation), Take risks(Leave current job, Lack of security, Potential failure), Make business decisions(using intuition).

8

What are the risks of running a business?

Lack of security (no steady income, could end up unemployed, leave a former job).

Failure (Time, money and effort wasted).

Financial Loss

9

What are the rewards of running a business?

Success, Making a profit, Independence & Choice